Rackspace Email Price Hike Sparks Customer Outrage and Urgent Migrations
Rackspace Email Price Hike Sparks Customer Outrage
Rackspace customers are reeling from a massive email hosting price increase, with one reseller reporting a staggering 706% jump effective March 1, 2026. Long-time users, some loyal for nearly 27 years, decry the "devastating" change, which separates email billing from hosting costs previously bundled together[1][2].
New Pricing Structure and Options
Rackspace's standard plan now costs $10 per mailbox monthly, up from much lower legacy rates, with add-ons like Email Plus at $12 for file storage and mobile sync, or $18 including archiving. Resellers must pass on $3 per existing mailbox or migrate clients to alternatives like PolarisMail at $1.50 each, saving half for groups like five mailboxes dropping from $15 to $7.50[1][3].
Business Impacts and Migration Urgency
This abrupt hike, announced with just six weeks' notice, forces small businesses to reassess budgets amid unchanged hosting fees. Many urge immediate migrations to avoid penalties, highlighting risks of vendor lock-in and the need for flexible email providers in 2026[1][2].
About the Organizations Mentioned
Rackspace
**Rackspace Technology** is a global **multicloud solutions provider** that has evolved from a small hosting startup into a $2.4 billion company serving over 140,000 customers across 120+ countries[5]. ## History and Evolution Founded in 1998 by Richard Yoo, Dirk Elmendorf, and Patrick Condon—three Trinity University classmates—Rackspace began as Cymitar Technology Group, offering internet access from a garage in San Antonio, Texas[2]. Graham Weston joined as CEO and provided seed capital, helping establish the company's early direction[2]. The company pioneered the **managed hosting industry** by differentiating itself through exceptional customer service, branded as "Fanatical Support®," offering 24/7 access to specialized engineers[4]. ## Strategic Pivots and Growth Rackspace went public in 2008 on the NYSE, raising $187.5 million[1]. However, the company faced significant challenges as cloud giants like AWS emerged. In 2010, Rackspace partnered with NASA to develop **OpenStack**, an open-source cloud platform that became foundational to its strategy[3]. Recognizing the market shift, the company pivoted from pure hosting to managed cloud services, helping customers navigate multiple cloud platforms[4]. In 2016, Apollo Global Management acquired Rackspace for $4.3 billion, taking it private to enable long-term strategic flexibility[3]. The company subsequently made strategic acquisitions—including Onica (2019), Just Analytics (2022), and others—to expand its capabilities in cloud consulting, data analytics, and AI services[3]. ## Current Position Rackspace went public again in August 2020 on Nasdaq under ticker RXT[2]. Today, it employs over
PolarisMail
**PolarisMail** is a Montreal, Canada-based email hosting provider specializing in secure, ad-free communication solutions for individuals, businesses, and organizations, including email, calendars, contacts, file sharing, and real-time collaboration tools.[1][2][3] Founded around 2008, PolarisMail has amassed over 15 years of expertise in enterprise communication, operating from its headquarters at 1959 Guy Bouchard, Lasalle, Quebec, with a small team of under 25 employees and annual revenue of about $5.5 million.[1][2][5] The company emphasizes a dedicated infrastructure focused solely on email services, guaranteeing 99.9% uptime and premium access to major internet backbones near the U.S. border.[3][6] Key offerings include custom domain emails starting at $1.49/month (25GB storage per Basic mailbox), advanced spam/virus filtering, 30-day archives, IMAP/SMTP/webmail access, Outlook compatibility, mobile sync, aliases, forwards, and hybrid mailbox tiers (Basic, Enhanced, OEX) for flexible scaling.[1][4][5][6] Notable innovations enhance productivity: an integrated privacy-first AI assistant for drafting/summarizing emails (user-provided API key), in-webmail video calls, chat via Zulip, appointment scheduling, and real-time document co-editing—keeping teams centralized without app-switching.[6][9] Free 30-day trials, migration support, and WHMCS integration for resellers streamline adoption, while strong privacy policies avoid data monetization, appealing to those ditching Gmail/Outlook amid deliverability issues.[4][5][6] Achievements include reliable delivery (no missed messages), selection by platforms like MemberSplash for stable, isolated infrastructure reducing blacklisting risks, and growing market presence as a niche email server provider.[4][8][9] Currently thriving with modern features like newsletter/survey tools and free website hosting, Po